Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 641 - AT - Central ExciseCENVAT Credit - inputs/input services/capital goods - manufacture of spirally welded steel pipes for Water Supply Projects and Gas Projects - N/N. 06/2006-CE dated 01.03.2006 - Time limitation. Under-valuation of pipes manufactured on job work basis - Held that:- Appellant is correct in his assertion that the issue is fully covered by the decision of CESTAT Chennai in M/s. Bhavani Enterprises and Ors. [2018 (2) TMI 139 - CESTAT CHENNAI], where it was held that Rule 8 of the Central Excise Valuation Rules will not be applicable in respect of the job work activities done by the appellants therein. - the demand of ₹ 40,70,960/- with interest, cannot be sustained and is, therefore, set aside. Ineligible credit availed on HR Coils - Held that:- HR Coils were used only in manufacture of water pipes which were not in the exempted or non-dutiable category. In fact, from the facts on hand, from para 3.4 of the Show Cause Notice, it is evident that the appellants were being supplied HR Coils with size 10 X 1250 MM. by M/s. Koya Ltd. along with duty paid invoices and they also themselves procured HR Coils with sizes 11 X 1147 MM and 14.2 X 1553.4 MM. All these HR Coils were exclusively used in manufacture of exempted pipes and were not used in any other duty paid pipes - the availment of CENVAT Credit will be barred by Sub-rule (1) of Rule 6 of the Rules - credit availed is required to be reversed - the appellant has to be given adjustment of the amount already reversed as above. For this limited purpose of re-quantification of demand on this issue, after giving adjustment of the amount already reversed by the appellant, we remand the matter to the adjudicating authority. Time Limitation - Held that:- There is no positive evidence to show suppression of facts with intention to evade payment of duty attracting the ingredients for invocation of extended period. In such event, the demand for the extended period with respect to the issues which are not contested on merits requires to be set aside as being time barred - the appellant is liable to pay the duty demand falling under the normal period. Penalties also set aside. Appeal allowed by way of remand.
|